Session of 2023
SENATE BILL No. 253
By Committee on Federal and State Affairs
2-15
AN ACT concerning alcoholic beverages; authorizing the delivery of
alcoholic liquor and cereal malt beverage by licensed retailers, licensed
clubs, drinking establishments and restaurants and third-party delivery
services to patrons; amending K.S.A. 41-327, 41-2601, 41-2701 and
41-2728 and K.S.A. 2022 Supp. 41-102 and repealing the existing
sections.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) A third-party delivery service permit shall allow
the permit holder to deliver alcoholic liquor or cereal malt beverage on
behalf of a retailer, a cereal malt beverage retailer as defined in K.S.A. 41-
2701, and amendments thereto, or a club and drinking establishment act
licensee as defined in section 3, and amendments thereto, in accordance
with the provisions of sections 2, 3 and 4, and amendments thereto, except
that such deliveries shall only occur within this state.
(b) An application for a third-party delivery service permit shall be
submitted in such form and manner as prescribed by the director and shall
include payment of the delivery service permit fee in the amount of
$1,500. Each application shall contain an affirmation by the applicant that
the applicant is registered to do business in this state and that all of the
following is true for each individual conducting deliveries on behalf of the
applicant:
(1) The individual is at least 21 years of age and holds a valid driver's
license;
(2) the individual will maintain or otherwise be covered by primary
automobile insurance that meets the minimum coverage requirements in
K.S.A. 40-284 and 40-3107, and amendments thereto; and
(3) the individual will comply with the provisions of sections 2, 3 and
4, and amendments thereto, in conducting deliveries of alcoholic liquor
and cereal malt beverage.
(c) A third-party delivery service permit shall commence on the date
specified on the permit and expire one year after such date.
(d) A delivery service permit holder shall be liable for violations of
K.S.A. 41-715, and amendments thereto, and sections 2, 3 and 4, and
amendments thereto, that are committed by any individual conducting
deliveries on behalf of such third-party delivery service permit holder.
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(e) The secretary shall adopt rules and regulations necessary to
implement the provisions of this section.
(f) Personal data collected solely to comply with the requirements of
this section shall be limited to what is adequate, relevant and reasonably
necessary in relation to the purposes for which such data is processed, as
disclosed to the consumer. A retailer, licensee or third-party delivery
service permit holder shall implement and maintain reasonable security
procedures and practices, including administrative, physical and technical
safeguards appropriate to the nature of the data and the purposes for which
the data will be used to protect the data collected from the unauthorized
use, disclosure, access, destruction or modification to comply with the
requirements of this section.
(g) Nothing in sections 2, 3 and 4, and amendments thereto, shall be
construed to require a company that only provides technology services to a
retailer or licensee to obtain a third-party delivery service permit if the
company does not employ or contract with delivery drivers but only
provides software or an application that connects consumers and licensed
retailers.
(h) The provisions of this section shall be a part of and supplemental
to the Kansas liquor control act.
(i) At the time of application and for any changes at renewal, a third-
party delivery service shall submit an outline of internal or external
training for individuals engaged in delivery that addresses topics such as
identifying underage persons, intoxicated persons and fake or altered
identification.
(j) Individuals engaged in a delivery service shall use an
identification scanning software technology or an alternative approved by
the director, to verify the age of the consumer upon delivery.
New Sec. 2. (a) In addition to the rights of a retailer under the Kansas
liquor control act, a retailer license shall allow the retailer to deliver
alcoholic liquor and cereal malt beverage in the original unopened
container that is sold by such retailer to a patron at an address designated
by such patron for consumption off the licensed premises and not for
resale. Such delivery must occur within this state.
(b) Prior to any alcoholic liquor or cereal malt beverage being
removed from a retailer's licensed premises for delivery under this section,
such retailer shall finalize all payments for such alcoholic liquor or cereal
malt beverage made by the purchasing patron or obtain a debit or credit
card authorization for the total amount charged for such alcoholic liquor or
cereal malt beverage, including any additional fees to be charged in
connection with the delivery. All alcoholic liquor and cereal malt beverage
shall be assembled, packaged and fulfilled for delivery at such retailer's
licensed premises and from the retailer's inventory located at such
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premises.
(c) (1) A retailer may authorize deliveries on such retailer's behalf
through a contractual agreement with a third-party delivery service. A
third-party delivery service shall hold a valid delivery permit prior to
entering into any such contractual agreement with a retailer.
(2) A third-party delivery service may offer to conduct deliveries on
behalf of a retailer pursuant to this section if the retailer expressly agrees
in writing to allow the third-party delivery service to offer the delivery of
orders on behalf of such retailer.
(3) Any provision in an agreement between a third-party delivery
service and a retailer that is contrary to this subsection is void and
unenforceable.
(d) (1) A retailer may authorize a third-party delivery service to
conduct other delivery-related services. A third-party delivery service that
has contracted with a retailer for such services may use electronic means,
including, but not limited to, websites and mobile device applications, to
market, receive and process orders placed by patrons for alcoholic liquor
and cereal malt beverage if:
(A) The retailer retains sole discretion to determine whether to accept
an order and to complete a sale transaction;
(B) the sale transaction is between the patron placing the order and
the retailer that accepts such order, and the retailer appears as the merchant
of record at all times, including at the time of purchase and acceptance of
the delivery; and
(C) the retailer receives full payment from the patron placing the
order for all alcoholic liquor and cereal malt beverage included in such
order, and all moneys collected from such patron are automatically paid or
otherwise credited to such retailer.
(2) A third-party delivery service conducting deliveries or other
delivery-related services on behalf of a retailer shall not:
(A) Use a retailer's likeness to falsely suggest sponsorship or
endorsement of such third-party delivery service by such retailer;
(B) inflate or alter a retailer's pricing, but may assess other charges to
the patron if such charges are separately itemized on the receipt provided
to the patron; or
(C) charge the retailer any fee or other expense unless such fee or
other expense is clearly identified in a written agreement executed by both
parties.
(3) A third-party delivery service shall remove a retailer from such
third-party delivery service's delivery and delivery-related services within
10 days after receiving a request for such removal from such retailer.
(e) (1) All alcoholic liquor and cereal malt beverage that is removed
from a retailer's licensed premises for delivery pursuant to this section
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shall remain in the possession of such retailer or the third-party delivery
service. Such alcoholic liquor and cereal malt beverage shall not be
transferred to any other person until delivered to the address designated by
the patron or, if delivery cannot be completed, returned to the licensed
premises of the retailer.
(2) Alcoholic liquor and cereal malt beverage shall only be delivered
by an individual who:
(A) Is at least 21 years of age;
(B) holds a valid driver's license;
(C) is covered as the driver of a vehicle by primary automobile
insurance that meets the minimum coverage requirements in K.S.A. 40-
284 and 40-3107, and amendments thereto; and
(D) completes a training and certification program for individuals
delivering alcoholic liquor and cereal malt beverage pursuant to this
section that is reviewed and approved by the director and includes, but is
not limited to, identifying individuals who are less than 21 years of age or
intoxicated and recognizing false or altered forms of identification.
(f) (1) All alcoholic liquor and cereal malt beverage delivered
pursuant to this section shall only be delivered to a location in a county
where the qualified electors of the county approved, by a majority vote of
those voting therein, the proposition to amend section 10 of article 15 of
the constitution of the state of Kansas at the general election in November
1986, or have approved a proposition to allow sales of alcoholic liquor by
the individual drink in public places within the county at an election
pursuant to K.S.A. 41-2646, and amendments thereto, and to an individual
who is at least 21 years of age and who presents valid government-issued
photographic identification verifying the age of such individual. The
identity and age of the individual accepting delivery of any alcoholic
liquor or cereal malt beverage shall be verified, and such individual shall
execute a written or electronic acknowledgment of receipt of such
alcoholic liquor or cereal malt beverage and certification of such
individual's age. A delivery shall be deemed completed upon proper
acceptance of the alcoholic liquor or cereal malt beverage. All completed
deliveries shall be final.
(2) No delivery of alcoholic liquor or cereal malt beverage shall be
completed if:
(A) There is no individual physically present at the address
designated by the patron placing the order who is available to accept
delivery;
(B) the individual attempting to accept delivery is:
(i) Less than 21 years of age;
(ii) unable to provide valid government-issued photographic
identification; or
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(iii) noticeably intoxicated; or
(C) the address designated by the patron placing the order is:
(i) Part of any locker, mailbox, package shipping location or similar
service or storage facility business;
(ii) any place of worship;
(iii) any daycare;
(iv) any elementary or secondary school;
(v) any public or private postsecondary educational institution; or
(vi) any place of business that is licensed under the Kansas liquor
control act, Kansas cereal malt beverages act or the club and drinking
establishment act to manufacture, distribute or sell alcoholic liquor, except
that such deliveries may be made to a guest of a hotel for personal
consumption and not for resale.
(3) Deliveries of alcoholic liquor or cereal malt beverage shall only
be made:
(A) On the same calendar day that such alcoholic liquor or cereal
malt beverage is removed from the retailer's license premises for delivery;
(B) during those times when it is lawful for the retailer to sell
alcoholic liquor or cereal malt beverage for consumption off the licensed
premises; and
(C) to a Kansas address that is located within a 25-mile radius from
the licensed premises of the retailer that sold such alcoholic liquor or
cereal malt beverage.
(g) Each retailer delivering alcoholic liquor or cereal malt beverage
pursuant to this section and each third-party delivery service shall submit
to the director an outline of a training and certification program for
individuals delivering alcoholic liquor and cereal malt beverage pursuant
to this section that includes, but is not limited to, identifying individuals
who are less than 21 years of age or intoxicated and recognizing false or
altered forms of identification. The director shall review and approve or
deny all submitted program outlines. The director shall provide the
specific reason for the denial of any program outline along with notice to
the retailer or third-party delivery service that such program outline is
denied.
(h) In addition to the powers and duties of the director provided in
K.S.A. 41-201, and amendments thereto, the director and any employees
or agents thereof shall have the authority to conduct an audit of any
retailer's or third-party delivery service's records to determine if any
provision of this section or any rule or regulation adopted by the secretary
has been violated or to secure evidence of any such violation. Retailers or
third-party delivery service permit holders shall maintain records of
alcoholic liquor sales delivered for a period of three years.
(i) In addition to or in lieu of any other civil or criminal penalty
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provided by law, the director, upon a finding that a retailer or third-party
delivery service has violated any provision of this section, may impose a
civil fine not to exceed $1,000 for each violation. The director may enforce
the requirements of this section against a retailer or a third-party delivery
service for any violations committed by a retailer or third-party delivery
service contracting with such retailer. The director may impose a civil fine
on a retailer or a third-party delivery service for the same violation.
Nothing in this section shall be construed to limit the jurisdictional
authority of the director in pursuing violations of this section against a
retailer or third-party delivery service.
(j) A retailer aggrieved by a third-party delivery service that violates
the provisions of this section may bring an action to enjoin such violation
and may seek damages resulting from such violation, including all profits
derived from such violation. A retailer may seek punitive damages in an
amount not to exceed three times the amount of profits and damages if the
defendant knowingly committed the violation or the violation was
committed in bad faith. The prevailing party in any such action may
recover reasonable attorney fees and court costs.
(k) A retailer may contract with another retailer as a third-party
delivery service to conduct deliveries and other delivery-related services
on behalf of such other retailer in accordance with the provisions of this
section. Such retailer shall hold a valid delivery permit prior to entering
into any such contractual agreement with such other retailer.
(l) The secretary shall adopt rules and regulations necessary to
implement and enforce the provisions of this section.
(m) The provisions of this section shall be a part of and supplemental
to the Kansas liquor control act.
New Sec. 3. (a) In addition to the rights of a licensee under the club
and drinking establishment act, such license shall allow the licensee to
deliver alcoholic liquor and cereal malt beverage in accordance with the
container limitation provisions of K.S.A. 41-2653, and amendments
thereto, that is sold by such licensee to a patron at an address designated
by such patron for consumption off the licensed premises and not for
resale. Such delivery must occur within this state.
(b) Prior to any alcoholic liquor or cereal malt beverage being
removed from a licensee's premises for delivery under this section, such
licensee shall finalize all payments for such alcoholic liquor or cereal malt
beverage made by the purchasing patron or obtain a debit or credit card
authorization for the total amount charged for such alcoholic liquor or
cereal malt beverage, including any additional fees to be charged in
connection with the delivery. All alcoholic liquor and cereal malt beverage
shall be assembled, packaged and fulfilled for delivery at such licensee's
premises and from such inventory located at such premises.
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(c) (1) A licensee may authorize deliveries on such licensee's behalf
through a contractual agreement with a third-party delivery service. A
third-party delivery service shall hold a valid delivery permit prior to
entering into any such contractual agreement with a licensee.
(2) A third-party delivery service may offer to conduct deliveries on
behalf of a licensee pursuant to this section if the licensee expressly agrees
in writing to allow the third-party delivery service to offer the delivery of
orders on behalf of such licensee.
(3) Any provision in an agreement between a third-party delivery
service and a licensee that is contrary to this subsection is void and
unenforceable.
(d) (1) A licensee may authorize a third-party delivery service to
conduct other delivery-related services. A third-party delivery service that
has contracted with a licensee for such services may use electronic means,
including, but not limited to, websites and mobile device applications, to
market, receive and process orders placed by patrons for alcoholic liquor
and cereal malt beverage if:
(A) The licensee retains sole discretion to determine whether to
accept an order and to complete a sale transaction;
(B) the sale transaction is between the patron placing the order and
the licensee that accepts such order, and the licensee appears as the
merchant of record at all times, including at the time of purchase and
acceptance of the delivery; and
(C) the licensee receives full payment from the patron placing the
order for all alcoholic liquor and cereal malt beverage included in such
order, and all moneys collected from such patron are automatically paid or
otherwise credited to such licensee.
(2) A third-party delivery service conducting deliveries or other
delivery-related services on behalf of a licensee shall not:
(A) Use a licensee's likeness to falsely suggest sponsorship or
endorsement of such third-party delivery service by such licensee;
(B) inflate or alter a licensee's pricing, but may assess other charges
to the patron if such charges are separately itemized on the receipt
provided to the patron; or
(C) charge the licensee any fee or other expense unless such fee or
other expense is clearly identified in a written agreement executed by both
parties.
(3) A third-party delivery service shall remove a licensee from such
third-party delivery service's delivery and delivery-related services within
10 days after receiving a request for such removal from such licensee.
(e) (1) All alcoholic liquor and cereal malt beverage that is removed
from a licensee's premises for delivery pursuant to this section shall
remain in the possession of such licensee or the third-party delivery
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43 SB 253 8
service. Such alcoholic liquor and cereal malt beverage shall not be
transferred to any other person until delivered to the address designated by
the patron or, if delivery cannot be completed, returned to the premises of
the licensee.
(2) Alcoholic liquor and cereal malt beverage shall only be delivered
by an individual who:
(A) Is at least 21 years of age;
(B) holds a valid driver's license;
(C) is covered as the driver of a vehicle by primary automobile
insurance that meets the minimum coverage requirements in K.S.A. 40-
284 and 40-3107, and amendments thereto; and
(D) completes a training and certification program for individuals
delivering alcoholic liquor and cereal malt beverage pursuant to this
section that is reviewed and approved by the director and includes, but is
not limited to, identifying individuals who are less than 21 years of age or
intoxicated and recognizing false or altered forms of identification.
(f) (1) All alcoholic liquor and cereal malt beverage delivered
pursuant to this section shall only be delivered to a location in a county
where the qualified electors of the county approved, by a majority vote of
those voting therein, the proposition to amend section 10 of article 15 of
the constitution of the state of Kansas at the general election in November
1986, or have approved a proposition to allow sales of alcoholic liquor by
the individual drink in public places within the county at an election
pursuant to K.S.A. 41-2646, and amendments thereto, and to an individual
who is at least 21 years of age and who presents valid government-issued
photographic identification verifying the age of such individual. The
identity and age of the individual accepting delivery of any alcoholic
liquor or cereal malt beverage shall be verified, and such individual shall
execute a written or electronic acknowledgment of receipt of such
alcoholic liquor or cereal malt beverage and certification of such
individual's age. A delivery shall be deemed completed upon proper
acceptance of the alcoholic liquor or cereal malt beverage. All completed
deliveries shall be final.
(2) No delivery of alcoholic liquor or cereal malt beverage shall be
completed if:
(A) There is no individual physically present at the address
designated by the patron placing the order who is available to accept
delivery;
(B) the individual attempting to accept delivery is:
(i) Less than 21 years of age;
(ii) unable to provide valid government-issued photographic
identification; or
(iii) noticeably intoxicated; or
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43 SB 253 9
(C) the address designated by the patron placing the order is:
(i) Part of any locker, mailbox, package shipping location or similar
service or storage facility business;
(ii) any place of worship;
(iii) any daycare;
(iv) any elementary or secondary school;
(v) any public or private postsecondary educational institution; or
(vi) any place of business that is licensed under the Kansas liquor
control act, Kansas cereal malt beverages act or the club and drinking
establishment act to manufacture, distribute or sell alcoholic liquor, except
that such deliveries may be made to a guest of a hotel for personal
consumption and not for resale.
(3) Deliveries of alcoholic liquor or cereal malt beverage shall only
be made:
(A) On the same calendar day that such alcoholic liquor or cereal
malt beverage is removed from the licensee's premises for delivery;
(B) during those times when it is lawful for the licensee to sell
alcoholic liquor or cereal malt beverage for consumption on the licensed
premises; and
(C) to a Kansas address that is located within a 25-mile radius from
the licensed premises of the licensee that sold such alcoholic liquor or
cereal malt beverage.
(g) Each licensee delivering alcoholic liquor or cereal malt beverage
pursuant to this section and each third-party delivery service shall submit
to the director an outline of a training and certification program for
individuals delivering alcoholic liquor and cereal malt beverage pursuant
to this section that includes, but is not limited to, identifying individuals
who are less than 21 years of age or intoxicated and recognizing false or
altered forms of identification. The director shall review and approve or
deny all submitted program outlines. The director shall provide the
specific reason for the denial of any program outline along with notice to
the licensee or third-party delivery service that such program outline is
denied.
(h) In addition to the powers and duties of the director provided in
K.S.A. 41-201, and amendments thereto, the director and any employees
or agents thereof shall have the authority to conduct an audit of any
licensee's or third-party delivery service's records to determine if any
provision of this section or any rule or regulation adopted by the secretary
has been violated or to secure evidence of any such violation. Licensees or
third-party delivery service permit holders shall maintain records of
alcoholic liquor sales delivered for a period of three years.
(i) In addition to or in lieu of any other civil or criminal penalty
provided by law, the director, upon a finding that a licensee or third-party
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43 SB 253 10
delivery service has violated any provision of this section, may impose a
civil fine not to exceed $1,000 for each violation. The director may enforce
the requirements of this section against a licensee or a third-party delivery
service for any violations committed by a licensee or third-party delivery
service contracting with such licensee. The director may impose a civil
fine on a licensee or a third-party delivery service for the same violation.
Nothing in this section shall be construed to limit the jurisdictional
authority of the director in pursuing violations of this section against a
licensee or third-party delivery service.
(j) A licensee aggrieved by a third-party delivery service that violates
the provisions of this section may bring an action to enjoin such violation
and may seek damages resulting from such violation, including all profits
derived from such violation. A licensee may seek punitive damages in an
amount not to exceed three times the amount of profits and damages if the
defendant knowingly committed the violation or the violation was
committed in bad faith. The prevailing party in any such action may
recover reasonable attorney fees and court costs.
(k) A licensee may contract with another licensee as a third-party
delivery service to conduct deliveries and other delivery-related services
on behalf of such other licensee in accordance with the provisions of this
section. Such licensee shall hold a valid delivery permit prior to entering
into any such contractual agreement with such other licensee.
(l) The secretary shall adopt rules and regulations necessary to
implement and enforce the provisions of this section.
(m) "Licensee" means a club, drinking establishment and restaurant
as those terms are defined in K.S.A. 41-1601, and amendments thereto, the
club and drinking establishment act.
(n) The provisions of this section shall be a part of and supplemental
to the club and drinking establishment act.
New Sec. 4. (a) In addition to the rights of a retailer under the Kansas
cereal malt beverage act, a retailer license shall allow the retailer to deliver
cereal malt beverage and beer containing not more than 6% alcohol by
volume in the original unopened container that is sold by such retailer to a
patron at an address designated by such patron for consumption off the
licensed premises and not for resale, provided that such delivery occurs
within the state.
(b) Prior to any cereal malt beverage and beer containing not more
than 6% alcohol by volume being removed from a retailer's licensed
premises for delivery under this section, such retailer shall finalize all
payments for such cereal malt beverage and beer containing not more than
6% alcohol by volume made by the purchasing patron or obtain a debit or
credit card authorization for the total amount charged for such cereal malt
beverage and beer containing not more than 6% alcohol by volume,
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43 SB 253 11
including any additional fees to be charged in connection with the delivery.
All cereal malt beverage and beer containing not more than 6% alcohol by
volume shall be assembled, packaged and fulfilled for delivery at such
retailer's licensed premises and from the retailer's inventory located at such
premises.
(c) (1) A retailer may authorize deliveries on such retailer's behalf
through a contractual agreement with a third-party delivery service. A
third-party delivery service shall hold a valid delivery permit prior to
entering into any such contractual agreement with a retailer.
(2) A third-party delivery service may offer to conduct deliveries on
behalf of a retailer pursuant to this section if the retailer expressly agrees
in writing to allow the third-party delivery service to offer the delivery of
orders on behalf of such retailer. Any provision in an agreement between a
third-party delivery service and a retailer that is contrary to this subsection
is void and unenforceable.
(d) (1) A retailer may authorize a third-party delivery service to
conduct other delivery-related services. A third-party delivery service that
has contracted with a retailer for such services may use electronic means,
including, but not limited to, websites and mobile device applications, to
market, receive and process orders placed by patrons for cereal malt
beverage and beer containing not more than 6% alcohol by volume if:
(A) The retailer retains sole discretion to determine whether to accept
an order and to complete a sale transaction;
(B) the sale transaction is between the patron placing the order and
the retailer that accepts such order, and the retailer appears as the merchant
of record at all times, including at the time of purchase and acceptance of
the delivery; and
(C) the retailer receives full payment from the patron placing the
order for all cereal malt beverage and beer containing not more than 6%
alcohol by volume included in such order, and all moneys collected from
such patron are automatically paid or otherwise credited to such retailer.
(2) A third-party delivery service conducting deliveries or other
delivery-related services on behalf of a retailer shall not:
(A) Use a retailer's likeness to falsely suggest sponsorship or
endorsement of such third-party delivery service by such retailer;
(B) inflate or alter a retailer's pricing, but may assess other charges to
the patron if such charges are separately itemized on the receipt provided
to the patron; or
(C) charge the retailer any fee or other expense unless such fee or
other expense is clearly identified in a written agreement executed by both
parties.
(3) A third-party delivery service shall remove a retailer from such
third-party delivery service's delivery and delivery-related services within
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10 days after receiving a request for such removal from such retailer.
(e) (1) All cereal malt beverage and beer containing not more than
6% alcohol by volume that is removed from a retailer's licensed premises
for delivery pursuant to this section shall remain in the possession of such
retailer or the third-party delivery service conducting the delivery on
behalf of such retailer. Such cereal malt beverage and beer containing not
more than 6% alcohol by volume shall not be transferred to any other
person until delivered to the address designated by the patron, or if
delivery cannot be completed, returned to the licensed premises of the
retailer.
(2) Cereal malt beverage and beer containing not more than 6%
alcohol by volume shall only be delivered by an individual who:
(A) Is at least 21 years of age;
(B) holds a valid driver's license;
(C) is covered as the driver of a vehicle by primary automobile
insurance that meets the minimum coverage requirements in K.S.A. 40-
284 and 40-3107, and amendments thereto; and
(D) completes a training and certification program for individuals
delivering cereal malt beverage and beer containing not more than 6%
alcohol by volume pursuant to this section that is reviewed and approved
by the director and includes, but is not limited to, identifying individuals
who are less than 21 years of age or intoxicated and recognizing false or
altered forms of identification.
(f) (1) All cereal malt beverage and beer containing not more than 6%
alcohol by volume delivered pursuant to this section shall only be
delivered to an individual who is at least 21 years of age and who presents
valid government-issued photographic identification verifying the age of
such individual. The identity and age of the individual accepting delivery
of any cereal malt beverage and beer containing not more than 6% alcohol
by volume shall be verified, and such individual shall execute a written or
electronic acknowledgment of receipt of such cereal malt beverage and
beer containing not more than 6% alcohol by volume and certification of
such individual's age. A delivery shall be deemed completed upon proper
acceptance of the cereal malt beverage and beer containing not more than
6% alcohol by volume. All completed deliveries shall be final.
(2) No delivery of cereal malt beverage and beer containing not more
than 6% alcohol by volume shall be completed if:
(A) There is no individual physically present at the address
designated by the patron placing the order who is available to accept
delivery;
(B) the individual attempting to accept delivery is:
(i) Less than 21 years of age;
(ii) unable to provide valid government-issued photographic
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identification; or
(iii) noticeably intoxicated; or
(C) the address designated by the patron placing the order is:
(i) Part of any locker, mailbox, package shipping location or similar
service or storage facility business;
(ii) any place of worship;
(iii) any daycare;
(iv) any elementary or secondary school;
(v) any public or private postsecondary educational institution; or
(vi) any place of business that is licensed under the Kansas liquor
control act, Kansas cereal malt beverages act or the club and drinking
establishment act to manufacture, distribute or sell alcoholic liquor, except
that such deliveries may be made to a guest of a hotel for personal
consumption and not for resale.
(3) Deliveries of cereal malt beverage and beer containing not more
than 6% alcohol by volume shall only be made:
(A) On the same calendar day that such cereal malt beverage and beer
containing not more than 6% alcohol by volume is removed from the
retailer's license premises for delivery;
(B) during those times when it is lawful for the retailer to sell cereal
malt beverage and beer containing not more than 6% alcohol by volume
for consumption off the licensed premises; and
(C) to a Kansas address that is located within a 25-mile radius from
the licensed premises of the retailer that sold such cereal malt beverage
and beer containing not more than 6% alcohol by volume.
(g) Each retailer delivering cereal malt beverage and beer containing
not more than 6% alcohol by volume pursuant to this section and each
third-party delivery service shall submit to the director an outline of a
training and certification program for individuals delivering cereal malt
beverage and beer containing not more than 6% alcohol by volume
pursuant to this section that includes, but is not limited to, identifying
individuals who are less than 21 years of age or intoxicated and
recognizing false or altered forms of identification. The director shall
review and approve or deny all submitted program outlines. The director
shall provide the specific reason for the denial of any program outline
along with notice to the retailer or third-party delivery service that such
program outline is denied.
(h) In addition to the powers and duties of the director provided in
K.S.A. 41-201, and amendments thereto, the director and any employees
or agents thereof shall have the authority to conduct an audit of any
retailer's or third-party delivery service's records to determine if any
provision of this section or any rule or regulation adopted by the secretary
has been violated or to secure evidence of any such violation. A retailer or
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third-party delivery service shall maintain records of cereal malt beverage
and beer sales delivered for a period of three years.
(i) In addition to or in lieu of any other civil or criminal penalty
provided by law, the director, upon a finding that a retailer or third-party
delivery service has violated any provision of this section, may impose a
civil fine not to exceed $1,000 for each violation. The director may enforce
the requirements of this section against a retailer or a third-party delivery
service for any violations committed by such retailer or third-party
delivery service contracting with such retailer or third-party delivery
service. The director may impose a civil fine on a retailer or a third-party
delivery service for the same violation. Nothing in this section shall be
construed to limit the jurisdictional authority of the director in pursuing
violations of this section against any retailer or third-party delivery
service.
(j) A retailer aggrieved by a third-party delivery service that violates
the provisions of this section may bring an action to enjoin such violation
and may seek damages resulting from such violation, including all profits
derived from such violation. A retailer may seek punitive damages in an
amount not to exceed three times the amount of profits and damages if the
defendant knowingly committed the violation or the violation was
committed in bad faith. The prevailing party in any such action may
recover reasonable attorney fees and court costs.
(k) A retailer may contract with another retailer as a third-party
delivery service to conduct deliveries and other delivery-related services
on behalf of such other retailer in accordance with the provisions of this
section. Such retailer shall hold a valid delivery permit prior to entering
into any such contractual agreement with such other retailer.
(l) The secretary shall adopt rules and regulations necessary to
implement and enforce the provisions of this section.
(m) The provisions of this section shall be a part of and supplemental
to the Kansas cereal malt beverage act.
Sec. 5. K.S.A. 2022 Supp. 41-102 is hereby amended to read as
follows: 41-102. As used in this act, unless the context clearly requires
otherwise:
(a) "Alcohol" means the product of distillation of any fermented
liquid, whether rectified or diluted, whatever its origin, and includes
synthetic ethyl alcohol but does not include denatured alcohol or wood
alcohol.
(b) "Alcoholic candy" means:
(1) For purposes of manufacturing, any candy or other confectionery
product with an alcohol content greater than 0.5% alcohol by volume; and
(2) for purposes of sale at retail, any candy or other confectionery
product with an alcohol content greater than 1% alcohol by volume.
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(c) "Alcoholic liquor" means alcohol, spirits, wine, beer, alcoholic
candy and every liquid or solid, patented or not, containing alcohol, spirits,
wine or beer and capable of being consumed by a human being, but shall
not include any cereal malt beverage.
(d) "Beer" means a beverage, containing more than 3.2% alcohol by
weight, obtained by alcoholic fermentation of an infusion or concoction of
barley, or other grain, malt and hops in water and includes beer, ale, stout,
lager beer, porter and similar beverages having such alcoholic content.
(e) "Caterer" means the same as defined by K.S.A. 41-2601, and
amendments thereto.
(f) "Cereal malt beverage" means the same as defined by K.S.A. 41-
2701, and amendments thereto.
(g) "Club" means the same as defined by K.S.A. 41-2601, and
amendments thereto.
(h) "Director" means the director of alcoholic beverage control of the
department of revenue.
(i) "Distributor" means the person importing or causing to be
imported into the state, or purchasing or causing to be purchased within
the state, alcoholic liquor for sale or resale to retailers licensed under this
act or cereal malt beverage for sale or resale to retailers licensed under
K.S.A. 41-2702, and amendments thereto.
(j) "Domestic beer" means beer which contains not more than 15%
alcohol by weight and which is manufactured in this state.
(k) "Domestic fortified wine" means wine which contains more than
16%, but not more than 20% alcohol by volume and which is
manufactured in this state.
(l) "Domestic table wine" means wine which contains not more than
16% alcohol by volume and which is manufactured without rectification or
fortification in this state.
(m) "Drinking establishment" means the same as defined by K.S.A.
41-2601, and amendments thereto.
(n) "Farm winery" means a winery licensed by the director to
manufacture, store and sell domestic table wine and domestic fortified
wine.
(o) "Fulfillment house" means any location or facility for any in-state
or out-of-state entity that handles logistics, including warehousing,
packaging, order fulfillment or shipping services on behalf of the holder of
a special order shipping license issued pursuant to K.S.A. 41-350, and
amendments thereto.
(p) "Hard cider" means any alcoholic beverage that:
(1) Contains less than 8.5% alcohol by volume;
(2) has a carbonation level that does not exceed 6.4 grams per liter;
and
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(3) is obtained by the normal alcoholic fermentation of the juice of
sound, ripe apples or pears, including such beverages containing sugar
added for the purpose of correcting natural deficiencies.
(q) "Manufacture" means to distill, rectify, ferment, brew, make, mix,
concoct, process, blend, bottle or fill an original package with any
alcoholic liquor, beer or cereal malt beverage.
(r) (1) "Manufacturer" means every brewer, fermenter, distiller,
rectifier, wine maker, blender, processor, bottler or person who fills or
refills an original package and others engaged in brewing, fermenting,
distilling, rectifying or bottling alcoholic liquor, beer or cereal malt
beverage.
(2) "Manufacturer" does not include a microbrewery, microdistillery
or a farm winery.
(s) "Microbrewery" means a brewery licensed by the director to
manufacture, store and sell domestic beer and hard cider.
(t) "Microdistillery" means a facility which produces spirits from any
source or substance that is licensed by the director to manufacture, store
and sell spirits.
(u) "Minor" means any person under 21 years of age.
(v) "Nonbeverage user" means any manufacturer of any of the
products set forth and described in K.S.A. 41-501, and amendments
thereto, when the products contain alcohol or wine, and all laboratories
using alcohol for nonbeverage purposes.
(w) "Original package" means any bottle, flask, jug, can, cask, barrel,
keg, hogshead or other receptacle or container whatsoever, used, corked or
capped, sealed and labeled by the manufacturer of alcoholic liquor, to
contain and to convey any alcoholic liquor. Original container does not
include a sleeve.
(x) "Person" means any natural person, corporation, partnership, trust
or association.
(y) "Personal data" means any information that is linked or
reasonably linkable to an identified natural person. "Personal data" does
not include aggregate data or publicly available information.
(z) "Powdered alcohol" means alcohol that is prepared in a powdered
or crystal form for either direct use or for reconstitution in a nonalcoholic
liquid.
(z)(aa) "Primary American source of supply" means the
manufacturer, the owner of alcoholic liquor at the time it becomes a
marketable product or the manufacturer's or owner's exclusive agent who,
if the alcoholic liquor cannot be secured directly from such manufacturer
or owner by American wholesalers, is the source closest to such
manufacturer or owner in the channel of commerce from which the
product can be secured by American wholesalers.
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(aa)(bb) (1) "Retailer" means a person who is licensed under the
Kansas liquor control act and sells at retail, or offers for sale at retail,
alcoholic liquors or cereal malt beverages.
(2) "Retailer" does not include a microbrewery, microdistillery or a
farm winery.
(bb)(cc) "Sale" means any transfer, exchange or barter in any manner
or by any means whatsoever for a consideration and includes all sales
made by any person, whether principal, proprietor, agent, servant or
employee.
(cc)(dd) "Salesperson" means any natural person who:
(1) Procures or seeks to procure an order, bargain, contract or
agreement for the sale of alcoholic liquor or cereal malt beverage; or
(2) is engaged in promoting the sale of alcoholic liquor or cereal malt
beverage, or in promoting the business of any person, firm or corporation
engaged in the manufacturing and selling of alcoholic liquor or cereal malt
beverage, whether the seller resides within the state of Kansas and sells to
licensed buyers within the state of Kansas, or whether the seller resides
without the state of Kansas and sells to licensed buyers within the state of
Kansas.
(dd)(ee) "Sample" means a serving of alcoholic liquor that contains
not more than: (1) One-half ounce of distilled spirits; (2) one ounce of
wine; or (3) two ounces of beer or cereal malt beverage. A "sample" of a
mixed alcoholic beverage shall contain not more than ½ ounce of distilled
spirits.
(ee)(ff) "Secretary" means the secretary of revenue.
(ff)(gg) (1) "Sell at retail" and "sale at retail" refer to and mean sales
for use or consumption and not for resale in any form and sales to clubs,
licensed drinking establishments, licensed caterers or holders of temporary
permits.
(2) "Sell at retail" and "sale at retail" do not refer to or mean sales by
a distributor, a microbrewery, a farm winery, a licensed club, a licensed
drinking establishment, a licensed caterer or a holder of a temporary
permit.
(gg)(hh) "To sell" includes to solicit or receive an order for, to keep or
expose for sale and to keep with intent to sell.
(hh)(ii) "Sleeve" means a package of two or more 50-milliliter or 3.2-
fluid-ounce containers of spirits.
(ii)(jj) "Spirits" means any beverage which contains alcohol obtained
by distillation, mixed with water or other substance in solution, and
includes brandy, rum, whiskey, gin or other spirituous liquors, and such
liquors when rectified, blended or otherwise mixed with alcohol or other
substances.
(jj)(kk) "Supplier" means a manufacturer of alcoholic liquor or cereal
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malt beverage or an agent of such manufacturer, other than a salesperson.
(kk)(ll) "Temporary permit" means the same as defined by K.S.A. 41-
2601, and amendments thereto.
(mm) "Third-party delivery service" means any person, including any
limited liability company or other legally recognized entity, that:
(1) Is registered to do business in this state;
(2) does not hold any license, other than a retailer's license, issued
under the Kansas liquor control act, the Kansas cereal malt beverage act
or the Kansas club and drinking establishment act;
(3) is not affiliated with any licensed manufacturer;
(4) holds a delivery permit issued pursuant to section 1, and
amendments thereto; and
(5) uses employees or independent contractors to deliver.
(ll)(nn) "Wine" means any alcoholic beverage obtained by the normal
alcoholic fermentation of the juice of sound, ripe grapes, fruits, berries or
other agricultural products, including such beverages containing added
alcohol or spirits or containing sugar added for the purpose of correcting
natural deficiencies. "Wine" includes hard cider and any other product that
is commonly known as a subset of wine.
Sec. 6. K.S.A. 41-327 is hereby amended to read as follows: 41-327.
Any licensee or permittee may renew his such license at the expiration
thereof if he such licensee is then qualified to receive a license or permit
and the premises for which such renewal license is sought are suitable for
such purpose.
Sec. 7. K.S.A. 41-2601 is hereby amended to read as follows: 41-
2601. As used in the club and drinking establishment act:
(a) The following terms mean the same as provided by defined in
K.S.A. 41-102, and amendments thereto:
(1) "Alcoholic liquor";
(2) "director";
(3) "original package";
(4) "person";
(5) "sale"; and
(6) "to sell."
(b) "Beneficial interest" shall not include any interest a person may
have as owner, operator, lessee or franchise holder of a licensed hotel or
motel on the premises of which a club or drinking establishment is located.
(c) "Caterer" means an individual, partnership or corporation that
sells alcoholic liquor or cereal malt beverage by the individual drink, and
provides services related to the serving thereof, on unlicensed premises
that may be open to the public, but does not include a holder of a
temporary permit, selling alcoholic liquor or cereal malt beverage in
accordance with the terms of such permit.
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(d) "Cereal malt beverage" means the same as provided by K.S.A. 41-
2701, and amendments thereto.
(e) "Class A club" means a premises that is owned or leased by a
corporation, partnership, business trust or association and that is operated
thereby as a bona fide nonprofit social, fraternal or war veterans' club, as
determined by the director, for the exclusive use of the corporate
stockholders, partners, trust beneficiaries or associates, hereinafter referred
to as members, and their families and guests accompanying them, as
provided in K.S.A. 41-2637, and amendments thereto.
(f) "Class B club" means a premises operated for profit by a
corporation, partnership or individual, to which members of such club may
resort for the consumption of food or alcoholic beverages and for
entertainment.
(g) "Club" means a class A or class B club.
(h) "Drinking establishment" means premises that may be open to the
general public, where alcoholic liquor or cereal malt beverage by the
individual drink is sold. The term "Drinking establishment" includes a
railway car.
(i) "Food" means any raw, cooked or processed edible substance or
ingredient, other than alcoholic liquor or cereal malt beverage, used or
intended for use or for sale, in whole or in part, for human consumption.
(j) "Food service establishment" means the same as provided by
K.S.A. 36-501, and amendments thereto.
(k) "Hotel" means the same as provided by K.S.A. 36-501, and
amendments thereto.
(l) "Individual drink" means a beverage containing alcoholic liquor or
cereal malt beverage served to an individual for consumption by such
individual or another individual, but which is not intended to be consumed
by two or more individuals. The term "individual drink" includes
beverages containing not more than:
(1) Eight ounces of wine;
(2) thirty-two32 ounces of beer or cereal malt beverage; or
(3) four ounces of a single spirit or a combination of spirits.
(m) "Minibar" means a closed cabinet, whether nonrefrigerated or
wholly or partially refrigerated, access to the interior of which is restricted
by means of a locking device that requires the use of a key, magnetic card
or similar device.
(n) "Minor" means a person under 21 years of age.
(o) "Morals charge" means a charge involving the sale of sexual
relations; procuring any person; soliciting of a child under 18 years of age
for any immoral act involving sex; possession or sale of narcotics,
marijuana, amphetamines or barbiturates; rape; incest; gambling; illegal
cohabitation; adultery; bigamy; or a crime against nature.
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(p) "Municipal corporation" means the governing body of any county
or city.
(q) "Public venue" means an arena, stadium, hall or theater, used
primarily for athletic or sporting events, live concerts, live theatrical
productions or similar seasonal entertainment events, not operated on a
daily basis, and containing:
(1) Not fewer than 4,000 permanent seats; and
(2) not fewer than two private suites that are enclosed or semi-
enclosed seating areas, having controlled access and separated from the
general admission areas by a permanent barrier.
(r) "Railway car" means a locomotive drawn conveyance used for the
transportation and accommodation of human passengers that is confined to
a fixed rail route and which derives from sales of food for consumption on
the railway car not less than 30% of its gross receipts from all sales of food
and beverages in a 12-month period.
(s) "Restaurant" means:
(1) In the case of a club, a licensed food service establishment that, as
determined by the director, derives from sales of food for consumption on
the licensed club premises not less than 50% of its gross receipts from all
sales of food and beverages on such premises in a 12-month period;
(2) in the case of a drinking establishment subject to a food sales
requirement under K.S.A. 41-2642, and amendments thereto, a licensed
food service establishment that, as determined by the director, derives
from sales of food for consumption on the licensed drinking establishment
premises not less than 30% of its gross receipts from all sales of food and
beverages on such premises in a 12-month period; and
(3) in the case of a drinking establishment subject to no food sales
requirement under K.S.A. 41-2642, and amendments thereto, a licensed
food service establishment.
(t) "RV resort" means premises where a place to park recreational
vehicles, as defined in K.S.A. 75-1212, and amendments thereto, is offered
for pay, primarily to transient guests, for overnight or longer use while
such recreational vehicles are used as sleeping or living accommodations.
(u) "Sample" means a serving of alcoholic liquor or cereal malt
beverage that contains not more than:
(1) One-half ounce of distilled spirits;
(2) one ounce of wine; or
(3) two ounces of beer or cereal malt beverage.
A sample of a mixed alcoholic beverage shall contain not more than ½
ounce of distilled spirits.
(v) "Secretary" means the secretary of revenue.
(w) "Temporary permit" means a temporary permit issued pursuant to
K.S.A. 41-1201, and amendments thereto.
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(x) "Third-party delivery service" means the same as defined in
K.S.A. 41-102, and amendments thereto.
Sec. 8. K.S.A. 41-2701 is hereby amended to read as follows: 41-
2701. As used in this act unless the context otherwise requires:
(a) "Cereal malt beverage" means any fermented but undistilled
liquor brewed or made from malt or from a mixture of malt or malt
substitute or any flavored malt beverage, as defined in K.S.A. 41-2729,
and amendments thereto, but does not include any such liquor which is
more than 3.2% alcohol by weight.
(b) "Director" means the director of alcoholic beverage control of the
department of revenue.
(c) "Manufacturer" means a manufacturer as defined by K.S.A. 41-
102, and amendments thereto.
(d) "Person" means any individual, firm, partnership, corporation or
association.
(e) "Retailer" means any person who is licensed under the Kansas
cereal malt beverage act and who sells or offers for sale any cereal malt
beverage or beer containing not more than 6% alcohol by volume for use
or consumption and not for resale in any form.
(f) "Place of business" means any place at which cereal malt
beverages or beer containing not more than 6% alcohol by volume are
sold.
(g) "Distributor" means a beer distributor licensed pursuant to the
Kansas liquor control act.
(h) "Legal age for consumption of cereal malt beverage" means 21
years of age, except that "legal age for consumption of cereal malt
beverage" shall mean 18 years of age if at any time the provisions of P.L.
98-363 penalizing states for permitting persons under 21 years of age to
consume cereal malt beverage are repealed or otherwise invalidated or
nullified.
(i) "Third-party delivery service" means the same as defined in K.S.A.
41-102, and amendments thereto.
Sec. 9. K.S.A. 41-2728 is hereby amended to read as follows: 41-
2728. From and after November 15, 2005:
(a) K.S.A. 41-2701 through 41-2727, and amendments thereto, and
section 14 3, and amendments thereto, shall be known and may be cited as
the Kansas cereal malt beverage act.
(b) Except as specifically provided in the Kansas cereal malt
beverage act, the power to regulate all phases of the manufacture,
distribution, sale, possession, transportation and traffic in cereal malt
beverages is vested exclusively in the state and shall be exercised as
provided in the Kansas cereal malt beverage act. No city or county shall
enact any ordinance or resolution which that is in conflict with the
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provisions of the Kansas cereal malt beverage act and any such ordinance
or resolution shall be null and void.
(c) The provisions of this act are severable. If any provision of this
act is held to be invalid or unconstitutional, it shall be presumed
conclusively that the legislature would have enacted the remainder of this
act without such invalid or unconstitutional provision.
Sec. 10. K.S.A. 41-327, 41-2601, 41-2701 and 41-2728 and K.S.A.
2022 Supp. 41-102 are hereby repealed.
Sec. 11. This act shall take effect and be in force from and after its
publication in the statute book.
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